Common Frustrations and Fears in Private Money Lending

What’s private money lending? It is the business of loaning money, commonly secured by real estate, through private investors. Who might these private investors be, you ask? They could either be individuals with money to invest or a group of people whose monetary contributions are used to fund these private loans generally secured by real estate.

In order to get a loan from a bank, you need to meet the 3 Cs, which stand for credit (your credit score and history), capacity (current income and ability to make payments), and collateral (assets that may be used to secure the loan). If you do not fully meet all three requirements, or you need to move quicker than the average bank, then your hope lies in private money lending. Such an arrangement benefits both the borrower and the lender. You as the borrower get a loan that you might not otherwise have achieved, while your lender gets the chance to earn an above average return.

There are some risks involved, of course. All types of loans come with them. There are also fears and frustrations in relation to the process. For instance, it can be frustrating when paperwork turn-around is delayed or when there are issues about accuracy. These are often minor hitches that amount to a lot of stress for all sides of the equation.

It’s even worse when the problem lies in the character of the people you’re dealing with. What if somebody you assumed to be trustworthy started demonstrating a lack of professionalism and integrity? This is one reason why you need to review references and partner with a professional team that knows how to look for red flags and stays on top of industry news.

Headaches often stem from the process or system itself. What do I focus on today? How do I keep on top of all of the players in the loan process? If this sounds like you, you also wonder who grows the business while you are putting out fires and pushing paperwork. If you have built a small team to assist you still wonder what happens if your “go to staff member” is out sick today or wants a vacation – OR QUITS.

Deep Fear however, usually stems from compliance issues. There are unpleasant possibilities such as changing regulations, the risk of a BRE or CFPB audit and the cost of compliance (e.g., software, trust accounts, quarterly reporting and CPA audits). You may feel compelled to learn everything or hire more staff to avoid making a mistake and embarrassing yourself but did you start investing in Private Lending to become a manager? Finding the right partner gives you the peace of mind you need and the free time you want.

Private loans are a godsend for those who cannot borrow from a bank due to stringent rules. Meanwhile, they are an opportunity for private investors to earn. It’s effectively a win-win situation. The risks are there, but they can be mitigated when an excellent servicing company is involved.

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Featured Testimonials

AAA Private Money has worked with Del Toro Loan Servicing for many years. We have found their responsiveness to be the best in the industry, and the quality of the work they do has always met or exceeded our expectations. We have formed lasting relationships with all of the staff and ownership and look forward to a long and prosperous relationship for many years to come.

Clinton Muhe

AAA Private Money, LLC

I appreciate your attention to detail in the discovery of the accounting miscalculation in my favor. Drew, you and your whole team represent the highest standards of integrity. It is very much appreciated. Again, a very heartfelt “Thank You” to you and the entire staff at Del Toro for all of the effort put forth on my behalf in order to bring this transaction to a successful conclusion.

Jim Feller

Double F Management, LLC

California Private Lenders has been working with Del Toro Loan Servicing for eight years now, and it has been a great experience. Not only do they have a great servicing department, but they also do all of our loan/lender documents. The customer service has been beyond spectacular. If you want to deal with an honest, competent and reliable servicing company that will put you as a priority, you can count on Del Toro.

Mike Christl

California Private Lenders President

During our two years working with Del Toro, we have always experienced outstanding customer service and professionalism. Leah Ecija, who handles our accounts, exudes professionalism in any situation. Del Toro always goes above and beyond the call of duty. Their positive attitude and cheerful disposition are an added bonus. It is a joy to work with them.

Joyce Cham

Woody Financial Realty Corporation

AJX Homes has worked with the Del Toro Loan Servicing team since 2010. We can’t say enough about how much they help make our flipping business run smoothly, from purchase to resale! Helping us quickly prepare and process loan documents for investors and escrow is the key to repeat business. We appreciate all the help Drew and his team have given us throughout the years.

Miguel A. Molina

AJX Homes LLC

I have reviewed the loan documents and, as usual, Del Toro (Katherine) has done an excellent job.

Dr. Stuart Weiss

Drew, Here’s to the man with the courage to fight, Here’s to the man, who did not let the bastards grind him down, I am grateful for all your efforts on my behalf, Here’s to the sweet smell of success.

James P. Feller

Double F Management Group, LLC

“Yes,” Pensco wanted the fully executed extension this morning and I had it! Both PS Modern and I have found you to be a wonderful person to help us. You have been positive and upbeat about making this easy for all of us! Thank you!

Howard Hyman

Fremont Bank

Catching 100 waves at the event reminded me of how powerful a community can be.

Just to share a little, I’m really proud that my ten person team raised $40,000!! That is enough to open two new schools this year.

The total event has raised $350,000 and donations are still coming in.

Sean Puckett

You guys are the absolute best!

Barbara Cuillo

Mortgage Securities

Recently, Sequoian Investments, Inc.’s success was recognized by the San Diego Business Journal as San Diego County’s Number One Fastest Growing Company for 2016- a list which represents companies in every sector of San Diego’s business community.

One of the ways we maximized our success was to strategically align ourselves with industry experts who share the same values of our company. One of those companies is Del Toro Loan Servicing, Inc.

Del Toro’s ability to tailor services to our specific needs (Loan Processing, Doc Drafting and Servicing) not only helped us achieve the success we’ve experienced, but also landed Del Toro in ranks of the “Fastest Growing Companies” San Diego as well.

We consider Del Toro a valued partner and we highly recommend anyone In the industry consider them as their primary resource or as a backup partner when your workload demands it.

Alexander Pellegrino

Sequoian Investments, Inc.

Our payoff that was short more than $9,000. Escrow explained that Del Toro’s Demand was inaccurate AND that the borrower was only required to pay only the amount on the Demand. AMAZINGLY, Del Toro management quickly accepted responsibility and told us to expect a wire the following day (which we did). That’s integrity…

Blue Sky Capital

You are doing an excellent job in sorting out this rather complicated matter.

Bob Holt

Dear Drew,

I am very pleased with your help on our case. You were very knowledgeable and accessible when needed. I think that your identification of issues was helpful in obtaining a fair settlement of the case. I would highly recommend you to any persons with a need for an expert witness in the note/deed of trust/securities law field.